FHFA ramps up mortgage-backed securities purchases as Pulte signals aggressive housing push

The Federal Housing Finance Agency is scaling up its mortgage-backed securities purchases, according to FHFA Director Bill Pulte. The move represents one of the most aggressive interventions in the US housing market since the 2008 financial crisis, with the government-sponsored enterprises Fannie Mae and Freddie Mac deploying their own capital to buy up mortgage bonds at a pace not seen in years. The broader goal is ambitious: $200 billion in total MBS purchases, directed by President Trump on January 8, 2026. An initial $3 billion tranche was executed that same day, funded by the GSEs’ existing liquidity rather than new government appropriations. The mechanics of a $200 billion bet on housing The FHFA authorized each GSE to hold up to $225 billion in mortgage bonds as of January 2026. That’s a massive expansion of their purchasing capacity, giving Fannie Mae and Freddie Mac room to respond to market conditions in real time. By the end of January, the two entities had collectively added $12.5 billion in MBS to their portfolios. The result was a modest but meaningful decline in mortgage rates, which eased toward 5.95%, a welcome reprieve from the nearly 8% levels that plagued borrow...